Alliance for Life v. Minister of National Revenue, (1999) 242 N.R. 106 (FCA)

• Judge: Stone, Linden and McDonald, JJ.A.
• Court: Federal Court of Appeal (Canada)
• Case Date: November 24, 1998
• Jurisdiction: Canada (Federal)
• Citations: (1999), 242 N.R. 106 (FCA)

Alliance for Life v. MNR (1999), 242 N.R. 106 (FCA)

MLB headnote and full text

Temp. Cite: [1999] N.R. TBEd. MY.022

Alliance for Life (appellant) v. The Minister of National Revenue (respondent)

(A-94-96)

Indexed As: Alliance for Life v. Minister of National Revenue

Federal Court of Appeal

Stone, Linden and McDonald, JJ.A.

May 5, 1999.

Summary:

The Minister of National Revenue gave notice to Alliance for Life under s. 168(1)(b) of the Income Tax Act that its registration as a charitable organization would be revoked as of a certain date. The Alliance for Life appealed.

The Tax Court of Canada dismissed the appeal. The Alliance for Life appealed again.

The Federal Court of Appeal dismissed the appeal.

Administrative Law - Topic 2266

Natural justice - The duty of fairness - What constitutes procedural fairness - The Alliance for Life was a charitable organi­zation incorporated to, inter alia, uphold and defend the right to life - The Minister of National Revenue (M.N.R.) gave notice to Alliance for Life under the Income Tax Act that its registration as a charitable organization would be revoked because it was not devoting all its resources to chari­table activities, but rather was too involved in political activities - The Alliance for Life appealed, arguing that there was a lack of procedural fairness by the M.N.R. -The Federal Court of Appeal rejected this argument and dismissed the appeal - See paragraphs 78 to 83.

Administrative Law - Topic 2267

Natural justice - The duty of fairness - Reasonable expectation or legitimate ex­pectation - The Alliance for Life was a charitable organization incorporated to, inter alia, uphold and defend the right to life - The Minister of National Revenue (M.N.R.) gave notice to Alliance for Life under the Income Tax Act that its registra­tion as a charitable organization would be revoked because it was not devoting all its resources to charitable activities, but rather was too involved in political activities - The Alliance for Life appealed, arguing that it had a legitimate expectation that it would be allowed to take "correct­ive measures" to maintain its status because it had been allowed to do so in the past - The Federal Court of Appeal rejected this argument and dis­missed the appeal - See paragraph 84.

Civil Rights - Topic 1863

Freedom of speech or expression - Denial of - What constitutes - The Alliance for Life was a charitable organization incor­porated to, inter alia, uphold and defend the right to life - The Minister of National Revenue (M.N.R.) gave notice to Alliance for Life under the Income Tax Act that its registration as a charitable organization would be revoked because it was not de­voting all its resources to charitable activi­ties, but rather was too involved in politi­cal activ­ities - The Alliance for Life ap­pealed, arguing that the Minister's con­duct violated s. 2(b) of the Charter (i.e., the freedom of expression) - The Federal Court of Appeal rejected this argument and dismissed the appeal - See paragraph 87.

Estoppel - Topic 1104

Estoppel in pais (by conduct) - Represen­tation - By statement - Representations which do not found estoppel - The Alli­ance for Life was a charitable organiz­ation incorporated to, inter alia, uphold and defend the right to life - The Minister of National Revenue (M.N.R.) gave notice to Alliance for Life under the Income Tax Act that its registration as a charitable organization would be revoked because it was not devoting all its resources to chari­table activities, but rather was too involved in political activities - The Alliance for Life appealed, arguing that the M.N.R. was estopped from revoking the registration because the M.N.R. had several years earlier represented to the organization that a number of its publications were then viewed as charitable and could be distrib­uted without adverse repercussions - The Federal Court of Appeal rejected this argument and dismissed the appeal - See paragraphs 85, 86.

Income Tax - Topic 7533

Exemptions - Charitable organizations - The Alliance for Life was a charitable organization incorporated to, inter alia, uphold and defend the right to life - The Minister of National Revenue gave notice to Alliance for Life under the Income Tax Act that its registration as a charitable organization would be revoked because it was not devoting all its resources to chari­table activities, but rather was too involved in political activities - The Alliance for Life appealed - The Federal Court of Appeal dismissed the appeal - The court reviewed the law respecting what consti­tutes a char­itable organization - See para­graphs 1 to 77.

Income Tax - Topic 7533

Exemptions - Charitable organizations - [See Administrative Law - Topic 2266 , Administrative Law - Topic 2267 , Civil Rights - Topic 1863 , and Estoppel - Topic 1104 ].

Cases Noticed:

Vancouver Society of Immigrant and Visible Minority Women v. Minister of National Revenue, [1996] 2 C.T.C. 88; 195 N.R. 235; 96 D.T.C. 6232 (F.C.A.), affd. (1999), 234 N.R. 249 (S.C.C.), refd to. [para. 3, footnotes 2, 3].

Commissioners of Income Tax v. Pemsel, [1891] A.C. 531 (H.L.), refd to. [para. 32, footnote 24].

Hopkins' Will Trusts, Re, [1965] 1 Ch. 669 (Ch. D.), refd to. [para. 33, footnote 26].

Scottish Burial Reform and Cremation Society Ltd. v. Glasgow Corp., [1968] A.C. 138 (H.L.), refd to. [para. 34, foot­note 27].

Inland Revenue Commissioners v. Mc­Mul­len, [1981] A.C. 1 (H.L.), refd to. [para. 34, footnote 28].

Native Communications Society of B.C. v. Minister of National Revenue, [1986] 3 F.C. 471; 67 N.R. 146 (F.C.A.), refd to. [para. 34, footnote 29].

Positive Action Against Pornography v. Minister of National Revenue, [1988] 2 F.C. 340; 83 N.R. 214 (F.C.A.), refd to. [para. 34, footnote 30].

Briarpatch Inc. v. Minister of National Revenue (1996), 197 N.R. 229; 96 D.T.C. 6294 (F.C.A.), refd to. [para. 34, footnote 31].

Interfaith Development Education Associ­a­tion, Burlington v. Minister of National Revenue (1997), 216 N.R. 371; 97 D.T.C. 5424 (F.C.A.), refd to. [para. 34, footnote 31].

N.D.G. Neighbourhood Association v. Minister of National Revenue (1988), 85 N.R. 73; 88 D.T.C. 6279 (F.C.A.), refd to. [para. 36, footnote 34].

Toronto Volgograd Committee v. Minister of National Revenue, [1988] 3 F.C. 251; 83 N.R. 241 (F.C.A.), refd to. [para. 36, footnote 34].

McGovern v. Attorney General, [1982] Ch. 321 (Ch. D.), refd to. [para. 36, footnote 35].

Farewell v. Farewell (1892), 22 O.R. 573 (H.C.), refd to. [para. 36, footnote 35].

Lewis v. Doerle (1898), 25 O.A.R. 206 (C.A.), refd to. [para. 36, footnote 35].

Hopkinson, Re, [1949] 1 All E.R. 346 (Ch. D.), refd to. [para. 36, footnote 37].

Koeppler Will Trusts, Re, [1984] Ch. 243, revd. [1986] 1 Ch. 423 (C.A.), refd to. [para. 36, footnote 37].

Inland Revenue Commissioners v. Glasgow Police Association, [1953] A.C. 380 (H.L.), refd to. [para. 36, footnote 37].

Jackson v. Phillip (1867), 96 Mass. 539 (Mass. Sup. Ct.), refd to. [para. 36, foot­note 37].

Bowman v. Secular Society Ltd., [1917] A.C. 406 (H.L.), refd to. [para. 36, foot­note 38].

Human Life International In Canada Inc. v. Minister of National Revenue, [1998] 3 F.C. 202; 232 N.R. 174 (F.C.A.), leave to appeal refused (1999), 236 N.R. 187 (S.C.C.), refd to. [para. 37, footnote 41].

Guaranty Trust Co. of Canada v. Minister of National Revenue, [1967] S.C.R. 133, refd to. [para. 43, footnote 45].

D'Aguiar v. Guyana Commissioner of Inland Revenue, [1970] T.R. 31 (P.C.), refd to. [para. 43, footnote 51].

Collier (Deceased), Re, [1998] 1 N.Z.L.R. 81 (H.C.), refd to. [para. 61, footnote 66].

Public Trustee v. New South Wales (At­tor­ney General) et al., [1997] N.S.W. LEXIS 1180 (S.C. Eq. Div.), refd to. [para. 64, footnote 70].

Anglo-Swedish Society v. Inland Revenue Commissioners (1931), 16 T.C. 34 (Ch. D.), refd to. [para. 67, footnote 71].

Buxton v. Public Trustee (1962), 41 T.C. 235 (Ch. D.), refd to. [para. 67, footnote 72].

Bushnell v. Lloyd's Bank, [1975] 1 All E.R. 721 (Ch. D.), refd to. [para. 67, footnote 73].

Public Trustee and Toronto Humane Society et al., Re (1987), 40 D.L.R.(4th) 111 (Ont. H.C.), refd to. [para. 67, foot­note 74].

Attorney General v. Scott, [1985] 3 All E.R. 334 (Ch. D.), refd to. [para. 67, footnote 75].

Webb v. O'Doherty et al., The Times, 11 February 1991 (Ch. D.), refd to. [para. 67, footnote 75].

Southwood et al. v. HM Attorney General, The Times, 9 October 1998 (Ch. D.), refd to. [para. 67, footnote 75].

Everywoman's Health Centre Society (1988) v. Minister of National Revenue, [1992] 2 F.C. 52; 136 N.R. 380 (F.C.A.), refd to. [para. 72, footnote 76].

British Pregnancy Advisory Service, Re, [1976] Ch. Com. Rep. 26, refd to. [para. 74, footnote 78].

McGregor v. Commissioner of Stamp Duties, [1942] N.Z.L.R. 164 (S.C.), refd to. [para. 74, footnote 79].

Auckland Medical Aid Trust v. Commis­sioner of Inland Revenue, [1979] N.Z.L.R. 382 (S.C.), refd to. [para. 74, footnote 79].

Syndicat des employés de production du Québec et de l'Acadie v. Commission canadienne des droits de la personne et al., [1989] 2 S.C.R. 879; 100 N.R. 241, refd to. [para. 80, footnote 82].

Old St. Boniface Residents Association Inc. v. Winnipeg (City) et al., [1990] 3 S.C.R. 1170; 116 N.R. 46; 69 Man.R.(2d) 134, refd to. [para. 80, foot­note 83].

Knight v. Board of Education of Indian Head School Division No. 19, [1990] 1 S.C.R. 653; 106 N.R. 17; 83 Sask.R. 81, refd to. [para. 80, footnote 84].

Renaissance International v. Minister of National Revenue (1982), 47 N.R. 1; 142 D.L.R.(3d) 539 (F.C.A.), refd to. [para. 81, footnote 85].

Reference Re Canada Assistance Plan (B.C.) - see Reference Re Constitutional Ques­tion Act (B.C.).

Reference Re Constitutional Ques­tion Act (B.C.), [1991] 2 S.C.R. 525; 127 N.R. 161; 1 B.C.A.C. 241; 1 W.A.C. 241, refd to. [para. 84, footnote 88].

Ludmer v. Canada - see Ludco Enterprises Ltd. et al. v. Ministre du Revenu na­­tional.

Ludco Enterprises Ltd. et al. v. Ministre du Revenu na­tional, [1995] 2 F.C. 3; 182 N.R. 125 (F.C.A.), refd to. [para. 86, footnote 90].

Statutes Noticed:

Income Tax Act, R.S.C. 1985 (5th Supp.), c. 1, sect. 149.1(1) [para. 30]; sect. 149.1(6.2) [para. 31]; sect. 168(1) [para. 29]; sect. 248(1)(a) [para. 31].

Income Tax Act, Information Circulars, Information Circular 87-1, Registered Char­ities - Ancillary and Incidental Po­litical Activities, paras. 12-17 [para. 35, foot­note 32]; Appendix A [para. 35, footnote 33].

Information Circulars - see Income Tax Act.

Authors and Works Noticed:

Abortion and Dried Fruit, generally [para. 57, footnote 63].

Picarda, H., The Law and Practice Relating to Charities (2nd Ed. 1995), p. 149 [para. 75, footnote 80].

Waters, D.W.M., Law of Trusts in Canada (2nd Ed. 1984), p. 566 [para. 36, foot­note 37].

Counsel:

David Sherriff-Scott and Arthur Drache, for the appellant;

Roger Leclaire, for the respondent.

Solicitors of Record:

Arthur Drache, Burke-Robertson & Buch­mayer, Ottawa, Ontario, for the appel­lant;

Morris Rosenberg, Deputy Attorney Gen­eral of Canada, Ottawa, Ontario, for the respondent.

This appeal was heard on November 24, 1998, at Ottawa, Ontario, by Stone, Linden and McDonald, JJ.A., of the Federal Court of Appeal. The following decision was delivered by Stone, J.A., on May 5, 1999.